Vietnam Ministry Urges to Cut Interest Rates to Support Im-Export
The Ministry of Trade and Industry (MoIT) has urged the State Bank of Vietnam, the country’s central bank, to take urgent measures to bring interest rates down in the first quarter of this year to support import and export.
The ministry made the call at a meeting in Hanoi December 30, the local newswire VnExpress reported.
MoIT Deputy Minister Nguyen Thanh Bien was quoted as saying that lower interest rates would facilitate local importers and exporters, which are in dire need of funds, to borrow money from banks to boost business.
Local economists said Vietnamese enterprises will face many difficulties in raising funds this year since the full-year credit growth is curbed at 23%, compared to 27.65% in 2010.
Vietnam currently has over 500,000 enterprises, of which 95% are SMEs.
The SMEs annually contribute 50% of the country’s exports, use 50% of the total number of employees and contribute 20% of GDP.
The State Bank of Vietnam, the country’s central bank, has not yet announced the base interest rate for January, meaning that the policy rate will be kept unchanged at 9% per annum. (VnExpress, Labor)
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